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3 Statement Model: Strictly Confidential
3 Statement Model: Strictly Confidential
Table of Contents
3 Statement Model
Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/
Assumptions
Income Statement
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Balance Sheet
© Corporate Finance Institute®. All rights reserved. Historical Results Forecast Period
FINANCIAL STATEMENTS 2012 2013 2014 2015 2016 2017 2018 2019 2020
Balance Sheet Check OK OK OK OK OK OK OK OK OK
Supporting Schedules
Working Capital Schedule
Accounts Receivable 5,100 5,904 6,567 7,117 7,539 7,807 8,158 8,485 8,782
Inventory 7,805 9,601 9,825 10,531 11,342 11,715 12,242 12,388 12,821
Accounts Payable 3,902 4,800 4,912 5,265 5,671 5,938 6,205 6,279 6,498
Net Working Capital (NWC) 9,003 10,705 11,480 12,382 13,210 13,584 14,196 14,594 15,105
Change in NWC 9,003 1,702 775 903 827 375 611 398 511
Depreciation Schedule
PPE Opening 50,000 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505
Plus Capex 15,000 15,000 15,000 15,000 15,000 15,000 10,000 25,000 10,000
Less Depreciation 19,500 18,150 17,205 16,544 16,080 15,008 15,005 13,003 17,802
PPE Closing 45,500 42,350 40,145 38,602 37,521 37,513 32,508 44,505 36,703
9,045
12,839
6,507
15,377
272
36,703
15,000
14,681
37,022
10,000
-
10,000
300
© Corporate Finance Institute®. All rights reserved.
DCF Model
Assumptions
Tax Rate 25% Cash Flow
Discount Rate 12% $50,000 $4
$43,510
Perpetural Growth Rate 3% $45,000 $41,501
$40,000 $37,715
EV/EBITDA Mulltiple 7.0x $35,000
Transaction Date 12/31/2017 $30,000
Fiscal Year End 6/30/2018 $25,000
$20,000 $17,747
Current Price 25.00
$15,000
Shares Outstanding 20,000 $10,000
Debt 30,000 $5,000
$0
Cash 239,550 2018 2019 2020 2021 2
Capex 15,000
Instructions
Step 1: Get EBIT and D&A from the income statement
Step 2: Calculate the net working capital
There are two ways to find NWC:
1. NWC = Current Assets (less cash) - Current Liabilities (less debt)
2. NWC = Accounts Receivable + Inventory - Accounts Payable
This chart isn't available in your version of Excel.
sh Flow
$47,008 Editing this shape or saving this workbook into a
$41,501
$43,510 different file format will permanently break the chart.
Rate of Return
500,000 Target Price Upside 35%
30,000 Internal Rate of Return (IRR) 26%
239,550
290,450 Market Value vs Intrinsic Value
Market Value 25.00
25.00 Upside 8.63
Intrinsic Value 33.63
This file is for educational purposes only. E&OE